Correlation Between Sahamit Machinery and Srithai Superware
Can any of the company-specific risk be diversified away by investing in both Sahamit Machinery and Srithai Superware at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sahamit Machinery and Srithai Superware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sahamit Machinery Public and Srithai Superware Public, you can compare the effects of market volatilities on Sahamit Machinery and Srithai Superware and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sahamit Machinery with a short position of Srithai Superware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sahamit Machinery and Srithai Superware.
Diversification Opportunities for Sahamit Machinery and Srithai Superware
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sahamit and Srithai is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Sahamit Machinery Public and Srithai Superware Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srithai Superware Public and Sahamit Machinery is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sahamit Machinery Public are associated (or correlated) with Srithai Superware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srithai Superware Public has no effect on the direction of Sahamit Machinery i.e., Sahamit Machinery and Srithai Superware go up and down completely randomly.
Pair Corralation between Sahamit Machinery and Srithai Superware
Assuming the 90 days trading horizon Sahamit Machinery is expected to generate 1.03 times less return on investment than Srithai Superware. But when comparing it to its historical volatility, Sahamit Machinery Public is 1.0 times less risky than Srithai Superware. It trades about 0.05 of its potential returns per unit of risk. Srithai Superware Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 109.00 in Srithai Superware Public on August 29, 2024 and sell it today you would earn a total of 23.00 from holding Srithai Superware Public or generate 21.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sahamit Machinery Public vs. Srithai Superware Public
Performance |
| Timeline |
| Sahamit Machinery Public |
| Srithai Superware Public |
Sahamit Machinery and Srithai Superware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sahamit Machinery and Srithai Superware
The main advantage of trading using opposite Sahamit Machinery and Srithai Superware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sahamit Machinery position performs unexpectedly, Srithai Superware can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Srithai Superware will offset losses from the drop in Srithai Superware's long position.| Sahamit Machinery vs. MCS Steel Public | Sahamit Machinery vs. Asia Plus Group | Sahamit Machinery vs. Lalin Property Public | Sahamit Machinery vs. Lam Soon Public |
| Srithai Superware vs. Krung Thai Bank | Srithai Superware vs. Halcyon Technology Public | Srithai Superware vs. Charoen Pokphand Foods | Srithai Superware vs. 2S Metal Public |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |